,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,/atus ( ,corpor,ns
,numb]3 ,,it-#cia;,r
,date3 ,septemb] #ad1 #aiib
,ref];e3 ,p>agraphs #hi7#a77f7 & 7g7 &
  sec;ns #dhjj & #dhjc (! ,9come ,tax
  ,regul,ns

               ,applic,n
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#cia dat$ ,augu/ #bi1
#aigg4 ,curr5t revi.ns >e designat$
0v]tical l9es4

                ,summ>y
    
  ,! tax tr1t;t ( corpor,ns dep5ds n
only on ! type ( 9come e>n$ 0a corpor,n
&! me?od ( 4tribu;n 6%>ehold]s1 b     #a
              ,,it-#cia;,r           a#a
al on :e!r ! corpor,n is class$ z
private or public4 ,? bullet9 4cusses !
def9i;ns ( private corpor,n & public
corpor,n4 ,! issue ( corporate resid;e
is al 4cuss$1 s9ce bo? ! def9i;ns (
private corpor,n & public corpor,n
require t ! corpor,n 2 resid5t 9
,canada4 ,al? a corpor,n is g5],y ei a
private corpor,n or a public corpor,n1
"! >e circum/.es ": x may 2 nei4

          ,4cus.n & ,9t]pret,n
    
#a4 ,a 8private corpor,n0 is def9$ 9
  p>agraph #hi7#a77f7 6be a corpor,n t
  is3
  7a7 resid5t 9 ,canada 7see #ae & #af
    2l72
  7b7 n a public corpor,n2 &
  7c7 n 3troll$ by3
    7;i7 "o or m public corpor,ns 7o!r
      ?an prescrib$ v5ture capital
      corpor,ns af ,july #ac1 #aiij72
                                      #b
              ,,it-#cia;,r           b#a
    7;ii7 "o or m prescrib$ f$]al ,cr[n
      corpor,ns af ,july #ac1 #aiij2 or
    7;iii7 any -b9,n ( 7;i7 & 7;ii74
  ,=! purposes ( 7;i7 & 7;ii7 abv1
  prescrib$ v5ture capital corpor,ns >e
  describ$ 9 sec;n #fgjj (! ,regul,ns &
  prescrib$ f$]al ,cr[n corpor,ns >e
  li/$ 9 sec;n #gajj (! ,regul,ns4
--------------------------------------#b
#b4 ,9 ord] =a corpor,n 6be a public
  corpor,n x m/ 2 resid5t 9 ,canada 7see
  #ae & #af 2l7 at ! "t ( det]m9,n4 ,x
  may !n qualify z a public corpor,n "u
  p>agraph #hi7#a77g7 if x3
  7a7 has a class or classes ( %>es li/$
    on "o (! foll[+ prescrib$ /ock
    ex*anges 7sec;n #cbjj (! ,regul,ns73
    ,alb]ta1 ,montr1l1 ,toronto1
    ,vanc\v] & ,w9nipeg2
  7b7 elects on ,=m ,t#bjgc 6be a public
    corpor,n 7#hi7#a77g77;ii77,a772
  7c7 is designat$ 6be a public corpor,n
    7#hi7#a77g77;ii77,b772 or
                                      #c
              ,,it-#cia;,r           a#b
  7d7 is a public corpor,n any"t af
    ,june #ah1 #aiga 7e4g4 x 0 =m]ly
    li/$ on a prescrib$ /ock ex*ange7
    7#hi7#a77g77;iii774
  ,6qualify z a public corpor,n 0elec;n
  or design,n 77b7 & 7c7 abv71 !
  corpor,n m/ -ply )! prescrib$ 3di;ns
  li/$ 9 subsec;n #dhjj7#a7 (! ,regul,ns
  reg>d+ ! numb] ( xs %>ehold]s1 4p]sal
  ( [n]%ip ( x %>es1 public trad+ ( x's
  %>es &! size (! corpor,n4 ,a corpor,n
  may al elect 7,=m ,t#bjfg71 or 2
  designat$1 n 6be a public corpor,n if
  x meets ! prescrib$ 3di;ns li/$ 9
  subsec;n #dhjj7#b7 (! ,regul,ns4 ,:5
  fil+ an elec;n "u clause
  #hi7#a77g77;ii77,a7 76be a public
  corpor,n7 or "u clause
  #hi7#a77g77;iii77,a7 7n 6be a public
  corpor,n71 ! require;ts ( subsec;n
  #dhjj7#d7 (! ,regul,ns m/ 2 met4
#c4 ,a special elec;n is availa# 6c]ta9
  new corpor,ns "u ! po/-am# 6p>agraph
  #hi7#a77g74 ,if a new corpor,n      #d
              ,,it-#cia;,r           b#b
  2comes a public corpor,n on or 2f ! "t
  :5 x m/ file ! ,t#b return = xs f/
  tax,n ye>1 ! elec;n 7: is fil$ ) t
  return7 deems ! corpor,n 6h be5 a
  public corpor,n s9ce xs date (
  9corpor,n4 ,z "! is no prescrib$ =m =
  ? elec;n1 a lr or simil> atta*;t sett+
  \ t an elec;n "u p>agraph #hi7#a77g7
  is 2+ made1 is su6ici5t4
#d4 ,subsec;ns #dhjj7#a7 & 7#b7 (!
  ,regul,ns require t ! numb] (
  %>ehold]s 2 det]m9$ =! purpose (
  p>agraph #hi7#a77g74 ,! "ns (!
  %>ehold]s & o!r relevant 9=m,n =
  id5tific,n %d 2 r1dily availa#
  6support s* a det]m9,n4 ,9 det]m9+ !
  %>ehold+s (! corpor,n1 ! emphasis is
  on b5eficial [n]%ip4 ,= example1 ": an
  ag5t
--------------------------------------#c
  or b>e tru/ee holds %>es (a corpor,n
  on 2half (a numb] ( pr9cipals1 ? %d n
  2 c.t$ z "o %>ehold]1 b r ! numb] ( s*
  pr9cipals wd 2 s 3sid]$4 ,9 !       #e
              ,,it-#cia;,r           a#c
  case (a p5.n fund or hold+ -pany1 ea*
  fund or -pany c.ts z "o %>ehold]4
#e4 ,! t]m 8public corpor,n0 does n
  necess>ily apply 6a l>ge corpor,n : is
  a public -pany 9 ! g5]al s5se4 ,=
  example1 a l>ge ,canadian corpor,n1 :
  is a subsidi>y (a =eign -pany ) %>es t
  >e publicly trad$ on /ock ex*anges >.d
  ! _w1 does n xf qualify z a public
  corpor,n = ,canadian tax purposes if x
  fails 6meet ! require;ts ( p>agraph
  #hi7#a77g74 ,simil>ly1 despite ! g5]al
  m1n+ (! ^w 8public01 a corpor,n [n$ 0!
  f$]al gov]n;t1 or a prov9cial or
  municipal gov]n;t 9 ,canada is n a
  public corpor,n if x does n meet !
  require;ts ( p>agraph #hi7#a77g74 ,s*
  a corpor,n may qualify z a 8private
  corpor,n0 z def9$ 9 p>agraph
  #hi7#a77f7 & may 2 5titl$ 6relief f
  ,"p ,,iv tax on taxa# divid5ds z
  provid$ "u subsec;ns #bbg7#ad7 &
  7#af74
                                      #f
              ,,it-#cia;,r           b#c
#f4 ,"s"ts1 a public corpor,n is 3troll$
  0a private corpor,n b1 0def9i;n1 a
  private corpor,n _c 2 3troll$ 0a
  public corpor,n4 ,h["e1 if ! p>5t (a
  ,canadian resid5t subsidi>y corpor,n
  is n resid5t 9 ,canada1 ! p>5t _c 2 a
  public corpor,n no matt] h[ widely xs
  %>es >e publicly trad$1 ev5 if !y >e
  al trad$ on ,canadian /ock ex*anges4
  ,"!=e1 x is possi# =! ,canadian
  resid5t subsidi>y 6qualify z a private
  corpor,n s9ce x is n 3troll$ 0a public
  corpor,n4
#g4 ,9 c]ta9 cases1 x is possi# =a
  ,canadian resid5t corpor,n 6be nei a
  private corpor,n nor a public
  corpor,n4 ,= example1 a ,canadian
  resid5t corpor,n falls 96? category if
  x fails 6meet ! require;ts =
  qualific,n z a public corpor,n "u
  p>agraph #hi7#a77g7 & x is al
  4qualifi$ z a private corpor,n 2c x is
  3troll$ 0a public corpor,n4 ,s* a
  corpor,n is "!=e n 5titl$ 6any      #g
              ,,it-#cia;,r           c#c
  special tr1t;t t applies 6private
  corpor,ns or 6public corpor,ns4
#h4 ,! ,act 3ta9s v>i\s deem+ provi.ns
  reg>d+ ! /atus ( corpor,ns4 ,= 9/.e1
  c]ta9 f$]al ,cr[n corpor,ns >e deem$ n
  to
--------------------------------------#d
  2 private corpor,ns pursuant 6subsec;n
  #bg7#b74 ,h["e1 un.s !y o!rwise
  qualify z public corpor,ns1 ! deem+
  provi.n does n 0xf cause !m 6be public
  corpor,ns = tax purposes4 ,c]ta9 non-
  resid5t-[n$ 9ve/;t corpor,ns >e deem$
  0sec;n #acd n 6be private corpor,ns
  except =! purposes ( sec;ns #hg1
  #bab.a & #bai & subsec;n #hh7#b74
  ,cr$it unions1 coop]ative corpor,ns &
  g5]al 9sur]s t o!rwise wd 2 private
  corpor,ns >e simil>ly deem$ n 6be
  private corpor,ns 0subsec;ns #acg7#g7
  & #acf7#a71 & sec;n #ada.a1
  respectively1 except = c]ta9 purposes
  (! ,act 9clud+ ! small busi;s deduc;n
  "u sec;n #abe4 ,"h ag1 ^!           #h
              ,,it-#cia;,r           a#d
  corpor,ns d n necess>ily 2come public
  corpor,ns ev5 ?\< !y >e deem$ n 6be
  private corpor,ns4
#i4 ,on ! o!r h&1 mortgage 9ve/;t
  corpor,ns 7z def9$ "u subsec;n
  #acj.a7#f77 & life 9sur]s 7z def9$ 9
  subsec;n #bdh7#a77 t >e resid5t 9
  ,canada1 >e deem$ 6be public corpor,ns
  0virtue ( subsec;n #acj.a7#e7 & sec;n
  #ada respectively4
#aj4 ,=a corpor,n 6qualify z an 9ve/;t
  corpor,n "u subsec;n #acj7#c7 or z a
  mutual fund corpor,n "u subsec;n
  #aca7#h7 x m/ 2 a public corpor,n4
  ,ord9>ily1 clos$-5d mutual fund
  -panies >e n public corpor,ns & "!=e d
  n qualify z mutual fund corpor,ns4
#aa4 ,a corpor,n t c1ses 6be a private
  corpor,n w no l;g] 2 a# 6elect =!
  pay;t ( capital divid5ds "u subsec;n
  #hc7#b74 ,9 a4i;n1 ! s\rce ( s*
  divid5ds1 ! capital divid5d a3.t z
  def9$ 9 p>agraph #hi7#a77b71 w 2 lo/ =
                                      #i
              ,,it-#cia;,r           b#d
  ? purpose1 6! ext5t t x 0 n us$ up
  prior 6! *ange ( /atus4
#ab4 ,an elec;n =! pay;t ( capital ga9s
  divid5ds "u subsec;n #aca7#a7 is
  availa# 6a corpor,n 9 a ye> only if x
  is a mutual fund corpor,n "?\t ! tax,n
  ye> 9 : a divid5d 2came paya#4 ,h["e1
  9 ord] 6be a mutual fund corpor,n "?\t
  a tax,n ye>1 ! corpor,n m/ al 2 a
  public corpor,n "?\t ! tax,n ye>4
--------------------------------------#e
#ac4 ,! bankruptcy (a corpor,n does n
  0xf *ange ! /atus (a corpor,n z
  private or public1 z ! case may be4
#ad4 ,if a public corpor,n act+ z an
  executor or tru/ee acquires 3trol (a
  private corpor,n on ! d1? ( an
  9dividual1 ! private corpor,n's /atus
  w n *ange provid$ "! is no undue delay
  9 4pos+ (! %>es4



                                     #aj
          ,corporate ,resid;e        a#e
    
#ae4 ,! -mon law has g5],y e/abli%$ t a
  corpor,n is resid5t 9 ! c.try 9 : xs
  c5tral manage;t & 3trol is ex]cis$
  7,de,be]s ,3solidat$ ,m9es ,limit$ v4
  ,h[e1 7#aijf7 ,a4,c4 #dee74 ,usu,y
  manage;t & 3trol exi/s ": ! memb]s (!
  ,bo>d ( ,directors meet & hold _!
  meet+s4 ,h["e1 if ! ,bo>d ( ,directors
  (a -pany does n 9 fact ex]cise xs
  p[]s1 &! manage;t & 3trol (! -pany is
  actu,y ex]cis$ 0"s o!r "py1 s* z !
  directors ( xs p>5t -pany or xs
  pr9cipal %>ehold]1 :o >e resid5t 9
  ano!r c.try1 ! -pany w 2 resid5t 9 t
  o!r c.try 7,unit ,3/ruc;n ,co4 ,limit$
  v4 ,bullock1 7#aifj7 ,a4,c4 #cea74
#af4 ,if a corpor,n is n resid5t 9
  ,canada 0virtue (! c5tral manage;t &
  3trol te/ 4cuss$ 9 #ae abv1 x may
  n"e!.s 2 resid5t 9 ,canada 0virtue (!
  deem+ provi.ns 9 subsec;n #bej7#d74 ,a
  corpor,n is g5],y deem$ 6be resid5t 9
  ,canada "?\t a tax,n ye> if3       #aa
              ,,it-#cia;,r           b#e
  7a7 x 0 9corporat$ 9 ,canada af ,april
    #bf1 #aife1 or
  7b7 x 0 9corporat$ 9 ,canada 2f ,april
    #bg1 #aife &1 dur+ any tax,n ye> 5d+
    af ,april #bf1 #aife1 x
    7;i7 0 resid5t 9 ,canada "u ! -mon
      law pr9ciples 7see #ae abv72 or
    7;ii7 c>ri$ on busi;s 9 ,canada4
  ,subsec;n #bej7#d7 al deems c]ta9
  corpor,ns1 9corporat$ 2f ,april #i1
  #aiei1 t w]e1 on ,june #ah1 #aiga1
  =eign busi;s corpor,ns 7)9 ! m1n+ (
  sec;n #ga z x r1d 9 xs applic,n 6!
  #aiga tax,n ye>7 t 7 3troll$ 0a
  corpor,n resid5t 9 ,canada1 6be
  resid5t 9 ,canada if c]ta9 o!r 3di;ns
  describ$ 9 t subsec;n h be5 met4






                                     #ab